What Does the RRSP Deadline Mean?

What Does the RRSP Deadline Mean?

Quite simply, the “RRSP Deadline” is the last day this year that you can make a contribution to your Registered Retirement Savings Plan (RRSP) but claim the tax credit on the previous year’s taxes. The RRSP deadline for the 2014 tax year is March 2, 2015. But do you have unused RRSP contribution room?

Where to Find your RRSP Contribution Limit

Each year, after you file your income tax, you’ll receive your Notice of Assessment back from Canada Revenue Agency (CRA).

Sometimes I hear the comment, “If I would have known the RRSP withdrawals were taxable in retirement, I never would have started an RRSP”. Please remember, an RRSP is simply a tax deferral method. You receive a tax credit now (tax refund or reduced tax payable) when you put money in the RRSP. The basic strategy for RRSPs is to contribute in years of high income earnings since your marginal tax rate (tax rate on the last dollar earned) is highest and then withdraw at a lower rate which is typically during retirement.